The evidence reported in this paper suggests that institutional investors capture a large fraction of the short-run profits associated with IPOs. The favored status enjoyed by institutional investors in underpriced offerings appears, however, to carry a quot;quid pro quoquot; expectation that...

Using word content analysis, we decompose information in the IPO prospectus into its standard and informative components. Greater informative content, as a proxy for pre-market due diligence, results in more accurate offer prices and less underpricing because it decreases the issuing firm's...

Short sale constraints in the aftermarket of initial public offerings (IPOs) are often used to explain short-term underpricing that is subsequently reversed. This paper shows that short selling is integral to the aftermarket and is higher in IPOs with greater underpricing. Perceived restrictions...

This paper documents that the relation of the final offer price to the range of anticipated offer prices disclosed in the preliminary prospectus is a good predictor of initial returns. Issues that have final offer prices which exceed the limits of the offer range have greater underpricing than...

We examine aftermarket transactions for closed-end fund IPOs and document large sell-to-buy imbalances (quot;flippingquot;), extensive price stabilization, and sharp subsequent price drops. The timing of the price drop is related to both the amount of initial flipping, and use of the...

The evidence reported in this paper suggests that institutional investors capture a large fraction of the short-run profits associated with IPOs. The favored status enjoyed by institutional investors in underpriced offerings appears, however, to carry a quid pro quo expectation that they will...

This study examines price stabilization in new equity issues. Stabilizationtruncates the distribution of post-issue prices at a floor price, lowering the risk of adverse price moves and hence, in a competitive dealer market, reducing the bid-ask spread. Using 1,523 NASDAO-traded firm-commitment...

We investigate the multiple attribute decision making problems in which attribute values take the form of triangular fuzzy linguistic information. Firstly, the definition and some operational laws of triangular fuzzy linguistic are introduced. Then, we have developed three fuzzy linguistic...

<title>Abstract</title>In this paper, we investigate the multiple attribute decision making problems with fuzzy number intuitionistic fuzzy information. Firstly, some operational laws of fuzzy number intuitionistic fuzzy values, score function and accuracy function of fuzzy number intuitionistic fuzzy values...

This article proposes a novel method of extracting the cost of default from the change in the market value of a firm's assets upon default. Using a large sample of firms with observed prices of debt and equity that defaulted over fourteen years, we estimate the cost of default for an average...